What to Know Before Buying Property for Sale in Málaga as a Foreigner

By Vivi Real Estate | 10 de April de 2025 |

Buying property for sale in Málaga has become an increasingly popular goal for international buyers looking to enjoy the Mediterranean lifestyle, invest in Spain’s real estate market, or secure a second home in a vibrant coastal city. From beautiful beaches and cultural heritage to modern infrastructure and strong rental yields, Málaga continues to attract a global audience.

But before making a purchase as a foreigner, there are essential things you should know—from legal requirements and taxes to local customs and practical considerations. This guide outlines everything you need to be aware of before buying property for sale in Málaga so you can make an informed and confident decision.

Why Málaga Is a Hotspot for International Buyers

Málaga is one of the most sought-after locations on the Costa del Sol. With a well-connected international airport, warm climate, beautiful coastline, and rich cultural history, it combines lifestyle appeal with solid investment potential.

The city has undergone a major transformation in the last two decades, with urban revitalization projects, new developments, and a growing international community. Whether you're looking to relocate, retire, or invest, Málaga offers excellent opportunities.

In particular, many investors looking to buy real estate Costa del Sol gravitate toward Málaga due to its blend of modern living and traditional charm.

Legal Requirements for Foreign Buyers

Foreign nationals can legally own property in Spain, and there are no restrictions on non-residents purchasing real estate. However, there are a few formalities and documents you'll need to prepare.

1. Get a NIE Number

Before buying property for sale in Málaga, you’ll need to obtain an NIE (Número de Identificación de Extranjero). This is your tax identification number in Spain, required for all legal transactions, including property purchases. You can apply through a Spanish consulate or directly in Spain.

2. Open a Spanish Bank Account

You'll need a local bank account to make payments related to the purchase—such as notary fees, taxes, and utility bills.

3. Hire a Local Lawyer

A Spanish lawyer (abogado) will help ensure the transaction is legal and transparent. They’ll conduct due diligence on the property, check land registry records, and help with contract preparation.

Having a legal expert is especially important for foreigners unfamiliar with Spain’s property laws.

Understanding the Buying Process

The property buying process in Spain has several key steps:

1. Search for Property: This can be done online or with the help of a local real estate agent.
   
2. Make an Offer: Once you’ve found a property you like, you can make a verbal or written offer.
   
3. Sign the Reservation Contract: This takes the property off the market and requires a small deposit (usually €3,000–€6,000).
   
4. Conduct Legal Checks: Your lawyer will verify the legality of the property, its ownership status, and any existing debts.
   
5. Sign the Private Purchase Contract: Typically includes a 10% deposit and sets a date for completion.
   
6. Complete at the Notary: Both buyer and seller sign the public deed, and the rest of the payment is made.
   
7. Register the Property: The purchase must be registered in the Spanish Land Registry.
   

This structured process ensures both parties are protected and obligations are clear.

Taxes and Fees to Expect

One of the most important things to prepare for when buying property for sale in Málaga is the additional costs. These are not always included in the advertised price, and they typically add 10–14% to the purchase cost.

1. Property Transfer Tax (ITP):

7–10% for resale properties, depending on the value and region.

2. VAT and Stamp Duty (for New Builds):

New properties are subject to VAT (10%) and stamp duty (1.5%).

3. Notary and Land Registry Fees:

These range from €1,000 to €3,000 depending on the property price.

4. Legal Fees:

Typically 1% of the purchase price.

It’s wise to calculate these fees upfront so there are no surprises later.

Financing the Purchase

Non-residents can obtain mortgages from Spanish banks, but usually at more conservative terms than for residents. Expect:

• Loan-to-value ratio: 60–70% for non-residents
  
• Term lengths: 20–30 years
  
• Interest rates: 2.5–4% (fixed or variable)
  

Make sure to have proof of income, tax returns, and bank statements ready when applying for a mortgage. A financial advisor can help you compare banks and rates.

Where to Buy in Málaga?

Málaga offers a range of neighborhoods for different lifestyles and budgets:

• Centro Histórico: Popular for short-term rentals and cultural attractions.
  
• La Malagueta: High-end coastal living near the beach and port.
  
• Teatinos: Modern residential zone, popular with families and professionals.
  
• El Limonar and Pedregalejo: Elegant, suburban areas with villas and top schools.
  

If your goal is property investment Costa del Sol, neighborhoods with rental demand or long-term growth potential are ideal. Areas close to transport links, universities, and cultural landmarks offer consistent rental income and rising property values.

Common Pitfalls to Avoid

1. Skipping Legal Advice

Relying only on the seller or agency is risky. Always hire an independent lawyer.

2. Not Checking Property Debts

Some properties come with unpaid taxes or community fees. Your lawyer should verify this before you commit.

3. Underestimating Costs

Many buyers forget about taxes, notary fees, and legal expenses. Always budget extra for these.

4. Rushing the Process

Take your time. Visit properties, ask questions, and understand the local market dynamics before making a decision.

Can Foreigners Rent Out Their Property?

Yes, foreigners can rent out their property in Málaga, either short-term (tourist rentals) or long-term. However, you’ll need a tourist license for short-term rentals, which can be obtained through the local government.

Be aware of local zoning laws and rental regulations, as these may vary across municipalities.

If you plan to buy real estate Costa del Sol for rental purposes, having a licensed property manager can help you navigate paperwork, marketing, and tenant management.

Partner with Vivi Real Estate for Expert Guidance

Navigating the Spanish property market as a foreigner can be complex—but you don’t have to do it alone. At Vivi Real Estate, we specialize in helping international buyers find, evaluate, and purchase property in Málaga with total confidence.

Our team offers local insights, multilingual support, and end-to-end assistance, from legal coordination to mortgage advice. Whether you're buying your first property abroad or adding to your portfolio, Vivi Real Estate ensures a smooth and secure buying experience.

Ready to explore opportunities in Málaga? Visit Vivi Real Estate to discover current listings and schedule your consultation today.